It is through these searches that a prospective homebuyer comes across terms like "contingent", "A/I", "pending" or "sale pending" and take them to mean "off the market."
In many cases, and depending on the source, this may not be true.
Here's is how you can tell if a "sale pending" home is still worth pursuing, courtesy of Zillow Blog.
"Subject to" and "Contingent Upon" Could Be Part of the Transaction
Buyers often make offers on properties that are "subject to" or "contingent upon" (generally "A/I" or "FIN" on ConnectMLS) certain factors, such as:
- A property inspection
- A bank approval
- A full loan approval
If any sale is contingent upon ANY factor, then there is still a chance that the contract may be exited should their conditions be compromised in any way. If, say, the property is not in the condition the buyer was expecting come a property inspection, or financing was not able to be secured, the property will go back on the market.
Despite an offer being accepted, the property may still be for sale
A home with contingencies, in some areas, may be labeled as something like "active with conditions" or an "active contingent." If all goes well during the process of verifying the contingencies, then the offer will move ahead. During this period, the seller cannot enter into another agreement with another buyer.
After this period has expired, however, there's an opportunity for another interested buyer to come into the picture. If the first offer falls through, then they may turn to a "backup offer" - your offer. Sellers would often prefer to directly turn to another interested buyer, rather than having to start over their entire process after a deal falls through.
If all contingencies are passed, "Sale Pending" becomes the title
A property that is TRULY "sale pending" is one that has completely satisfied all contingencies. The buyer is ready to move ahead with the closing, having passed all inspections and approved the loan.
The buyer is now officially "locked in" to buying the home, and taking the final step towards closing. This process could take anywhere from a couple of days to a couple weeks.
Essentially, read "Sale Pending" as "Pending the Final Closing."
Is there still an opportunity at this point?
A home is not sold until the property is closed and the deed has been recorded. Buyers have walked away from properties at this point before, usually due to an emergency of some sort.
If you love a property with a "sale pending" sign, it doesn't hurt to take ask a few questions.
See where the status of the buyer is. Use your real estate agent to ask the listing agent: Have they had the inspections? What was the result? Have there been any issues? Understanding the current situation of the home you're interested in is the first step in seeking out any potential opportunity behind the "sale pending" sign.
Questions? Send me an e-mail or give me a call, and I'll be happy to help.
No comments:
Post a Comment